Shares of Sanmina Corporation (NASDAQ:SANM) have formed a rising wedge pattern on their trading chart, indicating a momentum gain. The stock currently sits at $31.60

In technical analysis, a wedge is a security price formation where price trend lines above and below a price chart converge towards each other into an arrow shape. Wedge patterns are considered to be useful in analyzing a short term reversal of the major price trend by technical analysts.

Once the price breaks out from the wedge pattern, the expectation is that it will return to the major trend. Technical analysts see a ‘breakout’ of this wedge pattern as bullish if it breaks out above the upper line. A wedge shape that points upwards is used in analyzing an upward price trend inside a downward price trend.

An upwards rising wedge pattern is bearish. It begins wide at the bottom and gets smaller as stock prices move higher, causing the trading range to narrow. This is in contrast to symmetrical triangle patterns which have no slope and no bullish or bearish trends, wedge ups slope up and have a bearish bias.

RECENT PERFORMANCE

Let’s take a look at how the stock has been performing recently. Over the past twelve months, Sanmina Corporation’s stock was 53.55%. Over the last week of the month, it was 3.61%, 20.11% over the last quarter, and 24.17% for the past six months.

Over the past 50 days, Sanmina Corporation stock was -1.10% off of the high and 20.15% removed from the low. Their 52-Week High and Low are noted here. -1.10% (High), 93.75%, (Low).

HISTORICAL GROWTH

Sanmina Corporation (NASDAQ:SANM)’s performance this year to date is 53.55%. The stock has performed 3.61% over the last seven days, 11.46% over the last thirty, and 20.11% over the last three months. Over the last six months, Sanmina Corporation’s stock has been 24.17% and 35.56% for the year.

RSI

Sanmina Corporation’s shares may have great momentum, but how has it been performing relative to the market? The stock’s price is $31.60 and their relative strength index (RSI) stands at 70.26. RSI is a technical oscillator that shows price strength by comparing upward and downward movements. It indicates oversold and overbought price levels for a stock.

RECOMMENDATION

Analysts have a current price target of $31.60 on the company shares. The sell-side recommendation stands at 2.40 (1-5 scale). This is on a consensus basis according to Thomson Reuters’ First Call data.

Disclaimer: The views, opinions, and information expressed in this article are those of the authors and do not necessarily reflect the official policy or position of any company stakeholders, financial professionals, or analysts. Examples of analysis performed within this article are only examples. They should not be utilized to make stock portfolio or financial decisions as they are based only on limited and open source information. Assumptions made within the analysis are not reflective of the position of any analysts or financial professionals.